• With an estimated 51.5 million U.S. adults suffering from mental illness and the psychedelic drug market projected to grow at a 15% CAGR to nearly $13 billion by 2035
•  Both Compass Pathways and Mind Medicine are positioned to tap a massive unmet need.
• Mind Medicine leads in retail sentiment, cash runway into 2028, and late-stage progress with MM120, while Compass Pathways’ COMP360 could reach the market sooner.

After years on the fringes of mainstream medicine, psychedelic drugmakers are suddenly finding themselves in the spotlight.

Add Asianet Newsable as a Preferred Source

Shares of companies developing psychedelic-based therapies surged this year, buoyed by a gradual softening of regulatory resistance, growing political support, and a string of company-specific catalysts. Positive clinical trial readouts, renewed investor appetite, and a pickup in merger-and-acquisition chatter have all helped fuel momentum across the space.

As optimism builds around the therapeutic potential of psychedelics to treat conditions ranging from depression to PTSD, two names have stood out among the pack: Compass Pathways and Mind Medicine. Here’s a closer look at how these two psychedelic high-fliers compare — and what’s driving their rise.

Psychedelics Turn Mainstream

Stymied by regulatory roadblocks, research into hallucinogenic compounds remained largely dormant for decades. However, a gradual regulatory thaw and a growing mental-health crisis have sparked renewed scientific interest. Psychedelics such as psilocybin, MDMA, and LSD are moving into the mainstream of psychological research, backed by robust clinical trials and growing institutional support. 

The psychedelics drug market is expected to grow at a compounded annual growth rate (CAGR) of 15% to nearly $13 billion in 2035 from $3 billion in 2025, according to Business Research and Consulting Group Roots Analysis.

Source: Roots Analysis<

The AdvisorShares Psychedelics ETF (PSIL) has outperformed the SPDR S&P 500 ETF (SPY), which tracks the broader S&P 500 Index.

Source: Koyfin<

What Has Turned The Tide?

This class of drugs has received strong backing from high-profile personalities, including Health Secretary Robert F. Kennedy Jr. and FDA Commissioner Dr. Martin Makary. Kennedy has previously advocated for decriminalizing psychedelics for therapeutic use, citing his son’s positive experience with the hallucinogenic brew ayahuasca.

As an extension, the FDA has accorded top priority to review MDMA and other psychedelics, even mulling accelerated approval for these drugs. 

Big pharma name AbbVie announced an agreement to acquire Gilgamesh Pharmaceuticals' novel psychedelic therapy candidate, bretisilocin, in August for up to $1.2 billion, lending credence to this class of medication. Atai, a biotech developing treatments for mental health, merged with Beckley Psytech, bringing Beckley's BPL-003, an investigational therapy for treatment-resistant depression (TRD) and alcohol use disorder (AUD), into its pipeline. ATAI Beckley’s stock has gained 220% this year.

Compass Pathways Vs. Mind Medicine

Mind Medicine stock has returned about 110% year-to-date, compared with the 84% gain for Mind Medicine.

Source: Koyfin<

The primary draw for these stocks lies in the sheer size of the market opportunity. In a presentation, Mind Medicine highlighted that roughly 51.5 million adults in the U.S. are affected by mental illness, underscoring the vast and largely underserved demand for effective treatments.

Mind Medicines’ lead candidate MM120 orally disintegrating tablet (ODT) is in late-stage trials for major depressive disorder (MDD). Topline data from the study is due in mid-2026. Delving into the upcoming catalysts, CEO Rob Barrow said in the third-quarter earnings release:

Mind Medicine reported no revenue and a net loss of $67.3 million for the three months ended Sept. 30, 2025. On the other hand, Compass Pathways’ net loss stood at $137.72 million for the September quarter, compared with a loss of $38.50 million a year earlier.

London-based Compass Pathways’ lead candidate COMP360, a synthetic formulation of psilocybin that is in late-stage clinical trials for treating mental health conditions, primarily treatment-resistant depression (TRD). CEO Kabir Nath said in the earnings release that the company was moving up the expected launch timing for COMP360 in TRD by 9 to 12 months. The company intends to file for approval by the second half of 2026. 

MNMD Vs. CMPS: Cash Position

Mind Medicine has beefed up its cash position with a recent offering. It said its cash, cash equivalents, and investments as of September 30, 2025 ($209.1 million), along with the net proceeds of $242.8 million from the recently completed offering, will be sufficient to fund the operations into 2028. Meanwhile, Compass Pathways had a smaller cash reserve at a comparable point, but the company said it would be enough to fund operating expenses and capital expenditures through 2027.

Source: Fiscal.ai<

MNMD Vs. CMPS: How Retail’s Positioned

Retail traders, however, are favorably disposed to Mind Medicine. On Stocktwits, retail sentiment toward the stock has been ‘bullish’ as of early Wednesday.

Compass Pathways, meanwhile, attracted ‘neutral’ sentiment among retailers, with sentiment showing volatility throughout the year.

According to Koyfin, the average analyst price target for Mind Medicine stock is $28.67, implying 105% upside potential. All 13 analysts covering the stock have either a ‘Buy’ or a ‘Strong Buy’ rating on the stock. Compass Pathways stock, meanwhile, has 144% upside potential, based on the average price target of $16.82. All but one of the 11 analyst covering the stock has bullish ratings.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<